The ship builder said in a stock market announcement that its Yangzijiang Shipping unit was setting up Yangzijiang Taihua Shipping with several strategic partners with an initial capital investment of $1,100.
The company would be engaged in the leasing and chartering of vessels, it said. Most major shipyards in China also have finance or leasing arms affiliated with them.
Yanzijiang will take a 49.45% stake while the remaining 50.55% equity interest will be held by several strategic partners, whom it did not disclose. The group however noted that Yangzijiang Taihua Shipping is considered a subsidiary by virtue of its control over the composition of the latter’s board of directors.
The group said it believes the new subsidiary will be able to help it better position itself in the shipbuilding industry “when opportunities arise amid the current trend of consolidation”.
Yangzijiang raised over $150m from a rights issue in August.